Chapter 1 Study Guide

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School

University of Toronto Scarborough

Department

Management (MGT)

Course

MGTA01H3

Professor

H Laurence

Semester

Fall

Description

1 Chapter 1: Introducing the Contemporary Business World Business: an organization that seeks to earn profits by providing goods and services. Profit: the money that remains (if any) after a businesss expenses are subtracted from its revenues. Expenses: the money a business spends producing its goods and services and generally running the business; also referred to as costs. Revenues: the money a business earns selling its products and services; also referred to as sales. Economic System: the way in which a nation allocates its resources among its citizens. Factors of Production: the resources used to produce goods and services: labour, capital, entrepreneurs, and natural resources. Labour: the mental and physical training and talents of people; sometimes called human resources. Capital: the funds needed to operate an enterprise. Entrepreneur: an individual who organizes and manages labour, capital, and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure. Natural Resources: Items used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees. Information Resources: information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals. Command Economy: an economic system in which government controls all or most factors of production and makes all or most of the production decisions. www.notesolution.com